摘要：In this paper I analyze mobility in rural credit markets. A panel data set of rural Honduran households is used to study credit market transitions; specifically, the dynamic evolution of formal and informal sector participation. Mobility patterns among four different credit market states are analyzed, namely those who have formal sector participation, informal sector participation, participation in both sectors and nonparticipation in rural credit markets. I use a random effects dynamic multinomial logit model which can accommodate unobserved heterogeneity. The main findings are that state dependence plays a significant role in ones ability to borrow.
